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Andrea M.
  • Real Estate Investor
  • Hampton, VA
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562
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Caliber Home Loans/LSF8 Master Participation Trust ??

Andrea M.
  • Real Estate Investor
  • Hampton, VA
Posted

Not sure if I am in the correct forum for this post...but here goes:

Does anyone have any experience with Caliber Home Loans who are serviced by LSF8 Master Participation Trust . Initial lender was Beneficial ( listed as a short sale ) but was sold to the above company recently. Any insight would be helpful.

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Dion DePaoli
Pro Member
  • Real Estate Broker
  • Northwest Indiana, IN
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Dion DePaoli
Pro Member
  • Real Estate Broker
  • Northwest Indiana, IN
Replied

I think you may have that reversed. Caliber Home loans is a division of Lone Star Funds which is a private equity investment fund. The LSF8 Master Participation Trust is the vehicle they pooled the asset into not the servicer. So the trust is the owner and Caliber is the servicer.

What else are you trying to understand about it all?

  • Dion DePaoli
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    Andrea M.
    • Real Estate Investor
    • Hampton, VA
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    Andrea M.
    • Real Estate Investor
    • Hampton, VA
    Replied

    @Dion DePaoli Actually you are correct..I had it backwards. It is listed as a short sale and my friend is concerned because the loan was recently sold. The property has been listed for about a year with no offers. Her concern is will the new owner/servicer of the loan will foreclose on the property when she is pretty much ready to do a deed in leiu and have plans to vacate the property around March 2014.

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    48
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    Anthony Armstrong
    • Involved In Real Estate
    • Mc Kinney, TX
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    Anthony Armstrong
    • Involved In Real Estate
    • Mc Kinney, TX
    Replied

    @Andrea M. My primary residence is funded by Caliber. I first obtained my mortgage through a broker and I know that the loan was sold and it ended up with them. I really can't comment on the short sale situation, unfortunately.

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    Dion DePaoli
    Pro Member
    • Real Estate Broker
    • Northwest Indiana, IN
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    Dion DePaoli
    Pro Member
    • Real Estate Broker
    • Northwest Indiana, IN
    Replied

    Andrea,

    The property owner can speculate on how the mortgagee will handle a short sale or DIL but really she should simply contact the servicer and inquire about either the short sale or DIL. March is still two months away and it doesn't sound like she has overly communicated her intentions nor aligned her intentions with those of the mortgagee.

    There is no duty for the mortgagee to accept less than the total amount owed under the note regardless of the intentions of the borrower. A lender may not want to take a DIL for various reasons. It sounds like the borrower made her plan and wants it to go according to her desires but when she failed to maintain the debt service and now can't sell the property to pay for the loan, she doesn't really sit in the driver seat of this situation. As such, she can make decisions on her own plans but those might be made in a bubble. She needs to get the servicer and mortgagee involved in the resolution.

  • Dion DePaoli
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    Anthony Armstrong
    • Involved In Real Estate
    • Mc Kinney, TX
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    Anthony Armstrong
    • Involved In Real Estate
    • Mc Kinney, TX
    Replied

    For those who are wondering, I am not associated with the LSF8 Participation Trust or Caliber Home Loans.

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    Matthew Bonosky
    Pro Member
    • Real Estate Agent
    • Pittsburgh, PA
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    Matthew Bonosky
    Pro Member
    • Real Estate Agent
    • Pittsburgh, PA
    Replied

    @Dion DePaoli I'm currently the buyers agent in the purchase of a foreclosure involving LSF8 Master Participation Trust and Caliber Home Loans.  Your insight helped me out during this final week before closing.  Thank you!

  • Matthew Bonosky
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    Dion DePaoli
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    Dion DePaoli
    Pro Member
    • Real Estate Broker
    • Northwest Indiana, IN
    Replied
    Originally posted by @Matthew Bonosky:

    @Dion DePaoli I'm currently the buyers agent in the purchase of a foreclosure involving LSF8 Master Participation Trust and Caliber Home Loans.  Your insight helped me out during this final week before closing.  Thank you!

    Glad it helped.  This is an older thread.  How did this thread help you can I ask? 

  • Dion DePaoli
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    Matthew Bonosky
    Pro Member
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    • Pittsburgh, PA
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    Matthew Bonosky
    Pro Member
    • Real Estate Agent
    • Pittsburgh, PA
    Replied

    @Dion DePaoli. It helped because the purchase and sale is set up to Caliber Home Loans as the seller, but the owner on title is the trust. The asset manager of caliber is now giving a hard time to simply change the sellers name to the LSF8 Master Participation Trust. Still in talks to get it changed and the closing is on Friday...

  • Matthew Bonosky
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    Dion DePaoli
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    Dion DePaoli
    Pro Member
    • Real Estate Broker
    • Northwest Indiana, IN
    Replied
    Originally posted by @Matthew Bonosky:

    @Dion DePaoli. It helped because the purchase and sale is set up to Caliber Home Loans as the seller, but the owner on title is the trust. The asset manager of caliber is now giving a hard time to simply change the sellers name to the LSF8 Master Participation Trust. Still in talks to get it changed and the closing is on Friday...

    Who is on the deed trumps all.   

    Bear in mind what we discussed here in this thread was the ownership of the mortgage not the real property. When the loan is foreclosed different servicing guidelines typically apply which may require the mortgage servicer (Caliber here) to purchase the loan from the trust and sell the REO to recover those funds. So in that case Caliber would actually be your Seller. Prior to them selling they must convert title to their name. If they have not, then they can not sell. Your title company should also throw up a red flag as you would not have "clear" title - the trust's interest would still be at large.

    Careful not to imply improperly from this thread discussion.  Good luck.

  • Dion DePaoli